Asked by Haseeb Akhtar on May 01, 2024

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Verified

Long-term investments include:

A) Investments that are not readily convertible to cash or not intended to be converted to cash in the short term.
B) Investments in marketable stocks that are intended to be converted into cash in the short-term.
C) Investments in marketable bonds that are intended to be converted into cash in the short-term.
D) Only investments readily convertible to cash.
E) Investments intended to be converted to cash within one year.

Long-Term Investments

Investments held by a company for more than one year with the intention of yielding financial returns, such as stocks, bonds, or real estate.

Marketable Stocks

Shares that are easily bought or sold in the market due to their high liquidity and the presence of numerous buyers and sellers.

Marketable Bonds

Bonds that can be easily sold in the financial markets because they are highly liquid and attractive to investors.

  • Describe and contrast between investments that are held for short spans and those designed to be held over prolonged periods.
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Verified Answer

AE
Abria EzellMay 06, 2024
Final Answer :
A
Explanation :
Long-term investments are intended to be held for an extended period, typically more than one year. These types of investments are not readily convertible to cash or not intended to be converted to cash in the short term. Examples of long-term investments include real estate, mutual funds, retirement accounts, and certain types of stocks and bonds. Therefore, the best choice for long-term investments is A.